| Summary: | 碩士 === 樹德科技大學 === 金融與風險管理系碩士班 === 101 === This paper examines the operation performance of thirteen banks held by their bank holding companies in Taiwan. To approach the goal, we employ the data envelopment analysis (DEA) to measure the operating efficiency, the input variables include total assets, the operating expenses and the interest expenses. The output variables include the interest income, the commission income and the load amount. We then also use the Malmquist productivity index to analyze their dynamic operating efficiency. Try to figure out major factors in a drag on their operating performance. According to our findings, the banks globally present technical inefficiency during our observation period which may be mainly caused by a shortage of scale efficiency. On the basis of the Malmquist productivity index, all changes, such as the technical efficiency change, the technology change, the scale efficiency change and the total factor productivity change, are less than 1 except the pure technical efficiency change. This finding suggests that the banks should actively boost their technical efficiency and attend to approach the scale efficiency. Especially during economic recessions, the banks must adjust their cost factors and production factors for advancing their production frontier.
Our findings are listed as following:
1.Fubon Financial always reached technical efficiency during our observation period, which meant that their technical efficiency was independent of the boom fluctu-
ation , JihSun Holding reached technical efficiency only one year.
2.When the banks missed the technical efficiency, scale inefficiency was a key point most of the time.
3.While the banks missing the scale efficiency were emphasized, their returns to scale would decrease as the number of their branches rising. This implied that the resource allocation of domestic banks was too much and reduced the operating scale.
4.To observe the Malmquist productivity index, the total factor productivity change was dominated by the technology change, thus the effect of technology improvement on the total factor productivity advance was conspicuous than the effect of efficiency improvement.
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